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February 11, 2019,   6:11 PM

Saudi Jordanian Fund To Develop New $705 Million Railway Project In Jordan

Nermeen Abbas


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Photo credit: Shutterstock

The Saudi Jordanian Investment Fund and the Aqaba Special Economic Zone Authority have partnered to establish a railway network connecting Aqaba’s seaports to a dry port. The project will be built at a cost of JOD 500 million ($705 million).

The new port is to be constructed in Ma’an, as part of the first phase of Jordan’s national railway network.

As per an official statement by SJIF, the railway will operate along a 195-kilometer rail track, transporting cargo containers from and to Aqaba as well as phosphate from the mines in Shidiya to Aqaba for export.

The project includes construction of a new railway line inside the city of Aqaba, connecting the southern seaport and container terminal with the existing line and renovating the existing railway line connecting the city of Aqaba to Ma’an.

It is also procuring new rolling stock, wagons, and other equipment, and constructing a dry port in Ma’an on four million square meters of land.

"The Aqaba-Ma’an railway and Ma’an dry port would reduce transportation costs and spur the development of the logistics ecosystem in southern Jordan," said the Chief Commissioner of ASEZA, Nasser Shraideh.

The investment in the railway project is made in accordance with the Jordan Investment Fund Law number 16 for 2016.

The new project is a major Public Private Partnership project aimed at developing Jordan’s logistics offering through more efficient transportation solutions and supporting growth and job creation in the local communities in Aqaba and Ma’an.

The Saudi Jordanian Investment Fund was formed in 2017 as a partnership between the Public Investment Fund of Saudi Arabia, which owns 90% of the company, and 16 conventional and Islamic Jordanian banks that own the remaining 10%.

With a capital commitment of $3 billion, SJIF says that it pursues strategic, sustainable, and economically feasible investments in Jordan’s vital and promising sectors.

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